Raising a child is a costly endeavor. And while the love you have for your child makes every penny you spend on them worth it, your job as a provider comes with tremendous financial responsibility.
According to the U.S. Department of Agriculture’s most recent reports, the average cost of raising a child from birth to the age of 17 is $233,610. This number accounts for expenses such as food, shelter, childcare, and other necessities for a middle-income family. But when you factor in considerations such as ensuring your child has access to the best education, resources, opportunities, and experiences, you know this figure is actually quite low. And it does not cover the cost of a college education, which is conservatively more than $100,000 in 2020.
But despite the large expense of child-rearing, many people do not plan for it and simply trust that they will be able to rise to the challenge when the time comes.
Whether you are planning for a baby or you are already a parent, you can make moves to set yourself and your family up for success. As with any other goal, getting your finances in order to raise a child in the lifestyle you want to create for them starts with planning and requires discipline.
Look carefully at your spending, determine what kinds of experiences and material things you value as a family and create a reasonable household budget you can commit to confidently. Ensure you have adequate insurance and emergency reserves in place. Make an effort to increase your income over time, invest wisely, and take advantage of tax savings. Overall, maintain your focus on what matters most. Yes, it is costly, but the return on investment for parenthood is priceless.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
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